[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
92_SB1269eng SB1269 Engrossed LRB9201663TAtm 1 AN ACT concerning the State Treasurer. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Deposit of State Moneys Act is amended by 5 changing Section 7 as follows: 6 (15 ILCS 520/7) (from Ch. 130, par. 26) 7 Sec. 7. (a) Proposals made may either be approved or 8 rejected by the State Treasurer. A bank or savings and loan 9 association whose proposal is approved shall be eligible to 10 become a State depositary for the class or classes of funds 11 covered by its proposal. A bank or savings and loan 12 association whose proposal is rejected shall not be so 13 eligible. The State Treasurer shall seek to have at all times 14 a total of not less than 20 banks or savings and loan 15 associations which are approved as State depositaries for 16 time deposits. 17 (b) The State Treasurer may, in his discretion, accept a 18 proposal from an eligible institution which provides for a 19 reduced rate of interest provided that such institution 20 documents the use of deposited funds for community 21 development projects. 22 (c) The State Treasurer may, in his or her discretion, 23 accept a proposal from an eligible institution that provides 24 for interest earnings on deposits of State moneys to be held 25 by the institution in a separate account that the State 26 Treasurer may use to secure up to 10% of any (i) home loans 27 to Illinois citizens purchasing a home in Illinois in 28 situations where the participating financial institution 29 would not offer the borrower a home loan under the 30 institution's prevailing credit standards without the 31 incentive of a reduced rate of interest on deposits of State SB1269 Engrossed -2- LRB9201663TAtm 1 moneys,and(ii) existing home loans of Illinois citizens who 2 have failed to make payments on athehome loan as a result 3 of a financial hardship due to circumstances beyond the 4 control of the borrower where there is a reasonable prospect 5 that the borrower will be able to resume full mortgage 6 payments, and (iii) loans in amounts that do not exceed the 7 amount of arrearage on a mortgage and that are extended to 8 enable a borrower to become current on his or her mortgage 9 obligation. 10 The following factors shall be considered by the 11 participating financial institution to determine whether the 12 financial hardship is due to circumstances beyond the control 13 of the borrower: (i) loss, reduction, or delay in the receipt 14 of income because of the death or disability of a person who 15 contributed to the household income, (ii) expenses actually 16 incurred related to the uninsured damage or costly repairs to 17 the mortgaged premises affecting its habitability, (iii) 18 expenses related to the death or illness in the borrower's 19 household or of family members living outside the household 20 that reduce the amount of household income, (iv) loss of 21 income or a substantial increase in total housing expenses 22 because of divorce, abandonment, separation from a spouse, or 23 failure to support a spouse or child, (v) unemployment or 24 underemployment, (vi) loss, reduction, or delay in the 25 receipt of federal, State, or other government benefits, and 26 (vii) participation by the homeowner in a recognized labor 27 action such as a strike. In determining whether there is a 28 reasonable prospect that the borrower will be able to resume 29 full mortgage payments, the participating financial 30 institution shall consider factors including, but not 31 necessarily limited to the following: (i) a favorable work 32 and credit history, (ii) the borrower's ability to and 33 history of paying the mortgage when employed, (iii) the lack 34 of an impediment or disability that prevents reemployment, SB1269 Engrossed -3- LRB9201663TAtm 1 (iv) new education and training opportunities, (v) non-cash 2 benefits that may reduce household expenses, and (vi) other 3 debts.temporary layoff or disability, but who have resumed4making payments on the home loan and have made at least 25consecutive payments, when under the institution's prevailing6policies it would commence or pursue foreclosure proceedings7if it were not for the incentive of a reduced rate of8interest on deposits of State moneys.9 For the purposes of this Section, "home loan" means a 10 loan, other than an open-end credit plan or a reverse 11 mortgage transaction, for which (i) the principal amount of 12 the loan does not exceed 50% of the conforming loan size 13 limit for a single-family dwelling as established from time 14 to time by the Federal National Mortgage Association, (ii) 15 the borrower is a natural person, (iii) the debt is incurred 16 by the borrower primarily for personal, family, or household 17 purposes, and (iv) the loan is secured by a mortgage or deed 18 of trust on real estate upon which there is located or there 19 is to be located a structure designed principally for the 20 occupancy of no more than 4 familiesone familyand that is 21 or will be occupied by the borrower as the borrower's 22 principal dwelling. 23 (d) If there is an agreement between the State Treasurer 24 and an eligible institution that details the use of deposited 25 funds, the agreement may not require the gift of money, 26 goods, or services to a third party; this provision does not 27 restrict the eligible institution from contracting with third 28 parties in order to carry out the intent of the agreement or 29 restrict the State Treasurer from placing requirements upon 30 third-party contracts entered into by the eligible 31 institution. 32 (Source: P.A. 92-482, eff. 8-23-01.) 33 Section 99. Effective date. This Act takes effect upon SB1269 Engrossed -4- LRB9201663TAtm 1 becoming law.